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Gold reaches $5,300 for the first time due to dollar weakness before Fed decision
Investors waited for the Federal Reserve to announce its policy, amid growing concerns about the independence of the Fed. By 11:05 am, spot gold had risen 1.7% to $5,278.28 per ounce. After reaching a record of $5,311.31, ET (1605 GMT), gold prices fell to $5,278.28 an ounce. The previous session saw prices rise by more than 3%. U.S. Gold Futures for February Delivery jumped by?3.8% to $5275.30 per ounce. Dollar-priced gold is now cheaper for foreign buyers. Peter Grant, senior metals analyst at Zaner Metals and vice president at Zaner Metals said: "The rally has taken on a new life at this point." Grant said that gold remains overbought, and is vulnerable to a correction. However, strong buying during dips continues the trend of the upside. The next target, he added, was projected to be $5,400. All Eyes on the FED and POWELL Remarks Investors were waiting for the Federal Reserve to announce its policy at 2:00 pm ET (1900 GMT) on Wednesday. Rates are expected to remain steady and attention will be focused on Chair Jerome Powell's post-meeting remarks. ET (1900 GMT), with the expectation that rates will remain unchanged and the focus on Jerome Powell’s remarks after meeting. Donald Trump, the U.S. president, said on Tuesday that he will soon announce who he has chosen to replace Powell. Powell's term as chairman ends in May. He also predicted rate reductions under the new leadership. Gold is a safe haven asset, which does not pay interest. It performs best during times of low interest rates and general uncertainty. Gold has gained over 20% since the beginning of the year, adding to last year's record gains. Retail demand is still weak due to these record-high prices, and there are a lot more pent up?demands waiting for a relief... Grant stated that dealers are pulling away from the scrap metal business due to refiners being so behind schedule and refusing new orders until the metal has been processed. Spot'silver' rose by 0.1%, to $113.08 per ounce. It had hit a record-high of $117.69 an ounce on Monday. It has gained almost 60% this year. The spot price of platinum dropped 0.9%, to $2.618.21 per ounce after hitting a record high of $2.918.80 an ounce on Monday. Palladium, however, rose 4.6%, to $2.022.25.
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The court orders Dutch to do even more to reduce climate change impacts on Bonaire Island
The Dutch court on Wednesday ruled that the state should set binding greenhouse gas emission?targets?to achieve net zero by 2050 in order to protect the Dutch Caribbean island of Bonaire. This decision was hailed as a major victory by climate activists. The court gave the Netherlands a deadline of 18 months in which to develop a legally-binding plan to reduce greenhouse gases emissions to zero by 2050, as per international agreements. Legal experts claim that the case, brought by the environmental group Greenpeace, on behalf of Bonaire's residents, is the first test of climate obligations at a national level, as set out in the landmark 2024 European Climate ruling and the influential World Court advisory opinions of last year. Greenpeace's legal expert Eefje De Kroon said: "It's a?great victory for the people of Bonaire but also for us all, as the Dutch government must do more to protect those who are already suffering the consequences." Climate Minister Sophie Hermans stated that the government would review the decision, which may be appealed. However, the court's orders must be implemented. Impact on Crops, Islanders' Health Bonaire residents testified to The Hague District Court in October last year that the climate change has made the island unbearably dry and hot, affecting crops and islanders' health. Bonaire is located in the southern Caribbean and was a former Dutch colony. It became a Dutch special municipality in 2010. Around 20,000 of its residents are Dutch. The court found that the Dutch climate plans did not adequately address the problems in the Dutch Caribbean. Therefore, the Netherlands will need to develop a separate plan to reduce the impact of climate change on Bonaire and to lower the sea level. The court also stated that the Netherlands had violated human rights and discriminated the citizens of Bonaire by failing to make separate climate plans for their island. Jerzy Liiten, the presiding judge of the court, said that the state had not taken timely and sufficient measures to protect residents of Bonaire from the adverse effects of climate changes. After the verdict, Jackie Bernabela of Bonaire, who had been at the court to hear the decision, wiped her tears away. "We are not second-class citizens anymore. (We have) equality. "I am very happy," she said to reporters.
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Gold reaches $5,300 for the first time due to dollar weakness before Fed decision
Investors waited for the Federal Reserve to announce its policy, amid growing concerns about the independence of the Fed, and the gold price climbed to $5,300 an ounce on Wednesday. By 09:13 am, spot gold had risen 1.4% to $5,259.78 per ounce. After reaching a record of $5,311.31, ET (1413 GMT), gold prices were up 1.4%. The previous session saw prices rise by more than 3%. U.S. Gold Futures for February Delivery jumped by?3.4% to $5254.10 per ounce. Dollar-priced gold is now cheaper for overseas buyers. Peter Grant, senior metals analyst at Zaner Metals and vice president of the company, said that "the rally in precious metals has taken on a new life" Grant added that gold remains overbought, and is vulnerable to a 'correction. But strong buying during dips continues the trend of the upside. The?next projected target at $5,400. All Eyes on the FED and POWELL’s Remarks Investors were waiting for the Federal Reserve to announce its policy at 2:00 pm ET (1900 GMT) on Wednesday. Rates are expected to remain steady and attention will be focused on Chair Jerome Powell's post-meeting remarks. ET (1900 GMT), with the expectation that rates will remain unchanged and attention focused on Jerome Powell's remarks after the meeting. Donald Trump, the U.S. president, said on Tuesday that he will announce soon his choice to replace Powell. Powell's term as chair ends in May. He also predicted rate reductions under a new leader. Gold is a safe haven asset, but it does not pay interest. It performs best during times of low interest rates or uncertainty. Gold has gained over 20% since the start of the year. This is on top of last year's record gains. Retail demand is still weak due to these record-high prices, and there are a lot of pent up demands waiting for a respite. Grant stated that dealers are pulling back from scrap because refiners have a backlog and are not accepting new orders until the metal has been processed. Silver spot rose by 0.3%, to $113.31 per ounce. It had hit a record-high of $117.69 an ounce on Monday. It has risen by nearly 60% this year. The spot platinum price rose 0.1% to $2.643.70 per ounce after hitting a record of $2.918.80 an ounce on Monday. Palladium prices rose 3.9%, reaching $2,008.98.
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Turkey wants to increase trade with Nigeria by $5 billion
Tayyip Erdoan, the President of Turkey, said that he hoped to increase trade between Nigeria and Turkey to $5 billion. This was after a meeting with Nigerian President Bola Tinubu. Nigeria exports crude oil, agricultural products, and iron and steel to Turkey, while Turkey exports aircrafts, helicopters and machinery to Nigeria. Both countries signed agreements on defence cooperation, infrastructure, trade and investment as well as joint efforts against insurgency within the Sahel region of?Africa. Erdogan didn't give a time frame for reaching the new target, but said that talks had started. We see great potential for trade and investment. He said that in today's meetings, we committed to the $5 billion target for trade volume and discussed the steps needed. Tinubu is promoting foreign investments to spur growth in Africa’s most populous country following reforms introduced soon after he assumed office in 2023. Tinubu stated that "trade, business, and no restrictions" are critical to his growth goals. "How can we work together to build an inclusive economy? How can we include?vulnerables? How can we bring peace to the world? The Nigerian leader asked. Erdogan said that Turkey would support Nigeria in its fight against militant groups, drawing from its own experience. He said that "Terrorist?organisations, particularly those emerging in Africa's Sahel Region, pose a threat to peace on the entire continent." We discussed the possibility of closer cooperation in military training and intelligence. And we are willing to share our significant experience. Erdogan said that Nigerian officials will be expected to meet with the leading Turkish companies in the defence industry during their visit. (Written by Chijioke Ahuocha, edited by Chizu Nomiyama).
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Tether CEO plans to allocate as much as 15% of its portfolio towards gold
Tether CEO Paolo Ardoino announced that the crypto group plans to allocate between 10%-15% its investment portfolio towards physical gold. This is in addition to?the existing bullion backing some of their products. El Salvador-headquartered Tether ?said it has about 130 metric tons of physical gold to ?back ?its products, after adding 27 tons in the fourth quarter. Ardoino said that they have been purchasing around two tons per week. Ardoino did not disclose the exact value of Tether's portfolio of investments or how much gold was in it. It's difficult to choose which one I like best. In a video, he said that it was like having two children and having to choose which one is the most beautiful. Tether does not have an annual target for buying gold bullion. Instead, it will make the decision on a quarterly basis. Ardoino stated that Tether had been buying gold with its profits. It started in 2020, during the COVID-19 Pandemic. Then it continued to purchase as geopolitical tensions increased in its wake. "The world at the moment is not a happy place. Every day, gold reaches new highs. Why? "Because everyone is afraid," Ardoino said. The gold price increased by 64% last year. Tether has said that it purchased large quantities of gold to support the Tether USDT, a stablecoin with circulating tokens worth $186 billion, and the Tether gold token XAUT, which is valued at $2.7 billion. Gold prices are up 22% this year. They reached a record $5,311 per troy ounce in the United States on Wednesday, a result of buying spurred by a falling confidence?in the dollar, and concern about the independence of the Federal Reserve. Ardoino, who said that Tether employs about 250 people, invests in U.S. Treasury Bills and other assets to back up its USDT stablecoin. Ardoino expects Tether to earn more than $10 billion in 2025, and perhaps even $13.7 billion in 2024. Tether also invested in U.S. Treasuries and bitcoins, as well as the tech sector, gold royalties firms, and other assets. (Reporting and editing by Alexander Smith; Polina Devlint)
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India to adjust industrial output for seasonal changes in data revamp
The Indian statistics ministry is proposing to introduce a seasonal version of the closely monitored Index of Industrial?Production data (IIP), in order to reduce any impact that shifting festivals, such as Diwali, have on monthly readings. IIP data includes data from a variety of sectors, including manufacturing, mining and electricity generation. India publishes raw data for the month, without any adjustments. This can be seriously distorted by seasonal patterns and changes in festival dates, as well as differences in working hours. Data is frequently revised to take into account?these disruptions. In a discussion paper released by the Ministry on Wednesday, it was stated that a new "methodology" could be used to improve economic signals, without excessive revisions. According to the proposal, before publishing adjusted numbers, the ministry would remove predictable patterns and fluctuations from the monthly industrial data. It would also separate underlying trends from irregular shocks, temporary fluctuations, and other unpredictability. The proposal is part of an broader federal effort to revamp key economic data series by updating methods and revising base years to better reflect the current economic structure. In May, the base year of IIP data will be changed from 2011-12 to 2022-23. The paper stated that "many official statistical agencies now disseminate seasonally adjusted IIP data in response to an increased demand for such data?and also because multilateral institutions have made explicit recommendations in favor of this practice." The ministry is seeking feedback from stakeholders by the 12th of February on the proposed method, how to treat disruptions during the COVID era, and which holidays should be included in the adjustments. This represents a move towards aligning India’s industrial data to global practices. The?ministry had proposed to overhaul the index. This included replacing closed factories in the survey sample with units that are active to improve accuracy. It also considered more frequent revisions, perhaps annual, to the weights of?sectors to better reflect changes in the industrial structure of the country. India's latest IIP figures showed that industrial production rose at the fastest rate in over two years in December, at 7.8% compared to November's revised 7,2%.
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Drone-backed militants attack Nigerian army base, several soldiers dead
In the early morning hours of Thursday, Islamist militants supported by drones attacked an army base in Nigeria's northeastern Borno State, killing several soldiers. This was the second attack reported in that area this week. According to military spokesperson Lieutenant-Colonel Sani Uba, the use of drones in recent attacks by fighters from Islamic State West Africa Province has marked an escalation of violence in the region. Uba reported that the militants stormed the perimeter of the base and briefly breached a part?of it before dawn. He added that the drones destroyed several military vehicles including an excavator, low-bed trailer and other equipment. Uba stated that the army had regained control following the arrival of reinforcements. They had repelled the attackers and were now pursuing them. He said that some soldiers and members of the Civilian Joint Task Force "paid the ultimate price," without providing any details. According to two security sources, at least nine soldiers and two members of the task force were killed. Around 16 other people were also injured. Nigeria's army has advanced deeper into the insurgent strongholds of the northeast as part a renewed offensive against militant groups. Boko Haram, and its split faction ISWAP, continue to mount large-scale attacks despite repeated operations. They do so by exploiting the difficult terrain, porous borders, and weak state presence in parts of the arid north. Borno remains the epicenter of the 17-year Islamist conflict. Boko 'Haram and ISWAP have intensified their attacks against military convoys and on civilians. Reporting by Ahmed Kingimi in Maiduguri and Kolawole Adewale; Writing by Elisha B. Gbogbo, Editing by Andrew Heavens
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The nickel production of Nornickel Russia in 2026 is expected to be similar to the previous year.
Nornickel of Russia, the largest palladium and refined nickel producer in the world, said on Wednesday that it expected its nickel production to reach 193,000-203,000?metric tons by 2026. This is roughly in line with what was achieved in 2025. The company said that its 'palladium production?this year will fall between 2.415 and 2.465 millions ounces. This is after producing 2.725million ounces in 2025. This was down 1% on a year-over-year basis, but in line to their forecasts. The company reported that it would produce 198,521 tonnes of?nickel by 2025. This is a 3% decrease from the previous year. However, this result was within the range projected by the company of 196,000 to 204,001 tons. Nornickel attributes the decline in production in recent years to depletion of ore and forced switching to alternative mining equipment because of 'Western sanctions. The company was not directly sanctioned, but the sanctions have restricted access to Western equipment and complicated payment and logistics. Some foreign clients avoided buying Russian metal and the company has redirected sales to Asia. The company's Chief Operating Officer Evgeniy Fedorov stated that the production of all metals except platinum had been slightly reduced due to a temporary rise in the percentage of disseminated ore, while low-grade ore was sparse. He added that Nornickel continued to upgrade its mining equipment fleet by acquiring new suppliers after losing access Western equipment. It said that the company had begun construction on a?deeper level at its Skalisty Mine to bring rich ore from the Oktyabrskoye Deposit into production. Fedorov stated that "it is this project which will enable us to restore the share of rich ore production in total output by 2020." Vladimir Potanin, CEO of the company, said that the decline in production is a temporary phenomenon. Fedorov said that the company does not intend to cut production artificially. (Reporting and editing by Louise Heavens, Jan Harvey and Anastasia Lyrchikova)
As the Fed rate decision nears, the dollar is steadied and world stocks are at record highs.
The dollar recovered its footing after it had fallen sharply on Tuesday, when U.S. president Donald Trump appeared to "shrug off" its recent weakness. Meanwhile, positive earnings kept the world stock market near record highs ahead of a Federal Reserve interest rate decision.
The?U.S. The?U.S.
European stock markets declined, but U.S. futures indicated a positive opening for Wall Street. Japan's blue chip Nikkei also gained. The MSCI World Stock Index was hovering at record highs.
"Last Week, when it seemed like there was a flight away from the U.S., you saw equities fall, Treasuries take a hit, and the Dollar falling. It's now more about the dollar," said Jan von Gerich Nordea Chief Markets Analyst.
The Fed is expected hold rates steady at a meeting that was overshadowed by the criminal investigation launched by the Trump administration against U.S. central banks chief Jerome Powell. Also, there are ongoing efforts to remove Fed Governor Lisa Cook and a 'coming nomination of Powell's successor in May.
Von Gerich stated that "the most interesting thing about tonight's Fed meeting is that Powell can now speak more about this political pressure because he has?refrained so far from doing all of that."
On FX Watch
The dollar index (which measures the U.S. currencies against six major competitors) was 0.37% higher, at 96.27, after falling more than 1% to a four-year high on Tuesday.
Trump responded on Tuesday that the dollar's value was "great" when asked if he felt it had declined too much.
Although this view is not new, traders took it as a sign to increase the selling pressure on the US dollar. This comes at a moment when the markets are preparing for a possible coordinated currency intervention from U.S. authorities and Japanese authorities in order to stabilize the yen.
The dollar's plunge lifted the euro briefly over $1.20, the first time in 2021. It also sent the Australian Dollar temporarily above 70 cents, a three-year-high. Gold reached a new high and commodity prices, which are mostly denominated by dollars, rose to a record.
Guy Miller, chief strategist for Zurich Insurance Group, said that despite the fall in the dollar, it came from a "very rich level" and is still not cheap today.
"I don't think the administration is in a hurry to stop the decline."
Policymakers at the European Central Bank have meanwhile? flagged growing concerns about the rapid appreciation of the euro against the dollar and warned that it could bring inflation down, even though price growth has already been set to 'undershoot' the ECB target of 2%.
Earnings are plentiful
ASML, the world's largest supplier of computer chip equipment, reported stronger-than-expected bookings for the fourth quarter, highlighting resilient AI demand.
Its shares rose 5%, beating a flat European market.
Wall Street is in for a big day of tech earnings, with Meta and Tesla reporting their results after the closing bell.
The weaker dollar has filtered through to other assets. Gold reached a new record of $5,380 per ounce, and Brent crude futures have hit a high four months ago, just above $68.
In Asia, higher-than-expected inflation rates in?Australia during December have led to expectations that a rate increase could be announced as early as next week. ANZ, Westpac and all four of Australia's "Big Four banks" now predict a rate rise.
Indonesia's stock market plunged 7% as index provider MSCI expressed concern about the opaqueness of ownership and trading. It also halted updating Indonesian entries to its products which are monitored by global investors.
(source: Reuters)